ACTION ALERT–AMENDMENTS SUBMITTED GUTTING THE VIRGINIA FRAUD AGAINST TAXPAYERS ACT
As readers are aware, legislation has been submitted by state Sen. Jill Vogel to amend the Virginia Fraud Against Taxpayers Act such that it is brought up to date with the Federal False Claims Act. That legislation, SB1262 is needed and should be passed.
It appears that several ill-advised attempts are also being made to gut the Virginia Fraud Against Taxpayers Act. Specifically, SB831 and SB1314 were submitted in response to AG Ken Cuccinelli’s civil investigative demand (“CID”) to UVa.
SB831 provides that the Attorney General “may not issue a civil investigative demand to a Virginia public institution of higher education when the claim relates to a matter of academic inquiry or research.” This legislation would help to create a free-fraud zone in the academic community.
In case anyone needs proof that there are a certain percentage of academics in the world who are completely capable of falsifying records and/or making false statements in order to get grants, I suggest you google “false claims act” and “university” or “academic research.” Enough said.
SB1314 (by Sen. McEachin) goes a step further, and repeals the ability of the Attorney General to issue civil investigative demands altogether. McEachin, therefore, seems to be in favor of making Virginia a free-fraud zone altogether.
These bills might have disastrous consequences. No one is arguing that the Attorney General should not have the ability to file an affirmative civil enforcement action to enforce the terms of the Virginia Fraud Against Taxpayers Act; as I have said before, the purpose of a CID is to AVOID litigation in the first place by allowing the potential defendant to work with law enforcement to avoid being sued.
So, what SB831 and SB1314 would really accomplish would be to force the Attorney General to file a civil lawsuit when fraud was suspected.